{"id":1227,"date":"2022-06-24T14:46:25","date_gmt":"2022-06-24T14:46:25","guid":{"rendered":"https:\/\/effortlessmortgage.ca\/blogs\/?p=1227"},"modified":"2022-06-24T14:46:28","modified_gmt":"2022-06-24T14:46:28","slug":"where-is-canada-housing-market-headed-in-2022","status":"publish","type":"post","link":"https:\/\/effortlessmortgage.ca\/blogs\/where-is-canada-housing-market-headed-in-2022\/","title":{"rendered":"Where Is Canada’s Housing Market Headed in 2022?"},"content":{"rendered":"\t\t
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Are you going to be able to afford your mortgage next year?<\/strong><\/h2>\n

Let’s discuss how the interest changes are impacting the housing market and your mortgage.<\/b><\/h4>\n

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Whether you are a homeowner who\u2019s wondering about your mortgage, or you are looking to get into the housing market, the first thing we advise is “STOP” reading the news<\/strong><\/em>. There is so much misinformation out there.<\/p>\n

The news headlines are written to catch eyeballs. In a time like this, the media does very little other than create fear and panic.<\/p>\n

“Toronto Housing Crash Up To 36% In Some GTA Suburbs Since February 2022”<\/b><\/h4>\n

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Let’s take that article as an example. It says certain neighbourhoods in the GTA such as King City have seen property prices dropping as much as 36% vs March peak. OMG. That sounds scary, right?! 36% in just a matter of three to four months!<\/p>\n

But if you look deeper, the data it was referring to was biased and limited.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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First of all, King City is a small community with a large concentration of luxury homes. After pulling up the sold records in King City in the last 30 days, we found three homes sold — a $3M home, $1.2M townhouse and a $700K condo. Great — that’s all dwelling types! But it’s one each.<\/span><\/p>\n

How can you average 3 houses with each a different dwelling type? And, with luxury homes, each property is just so different that something with a 20 ft marble countertop and a very manicured garden could sell for $100K more. How do you average that with a condo?\u00a0<\/p>\n

HENCE, these types of headlines and data don’t offer what’s really going on.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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So, let’s get down to real data.<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Where is Canada's Housing Market Headed?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Interest Rate Changes<\/b>
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Bank of Canada Bank Rate has increased by 1.25% this year. It went from 0.25% in March 2022 to 1.5% in June 2022. We have seen similar changes around the end of 2017 – the Bank of Canada Overnight Rate went from 0.5% to 1.75% over the span of 12 months. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The higher overall interest rate led the increase of mortgage rates in the past three months.\u00a0<\/span>However, the impact on different terms varies a lot.\u00a0<\/span><\/p>\n

See below for a list of mortgage rate increases by term for\u00a0Insured Mortgages<\/span>\u00a0between March 2022 and June 2022:<\/p>\n